U.S. Navy Allocates $9.8 Million to Enhance Drone Battery Production in North Dakota
North Dakota Facility to Produce NDAA-Compliant Battery Cells for Defense Applications
Packet Digital and its subsidiary, Badland Batteries, have announced the receipt of $9.8 million as part of Phase 3 of a U.S. Navy contract aimed at developing advanced batteries for logistics drones and unmanned systems.
This funding is part of the Navy’s Logistics UAS Family of Advanced Batteries program, which supports the transition from factory construction to large-scale battery cell production at the company’s manufacturing facility in Fargo, North Dakota.
The initiative is part of a broader effort to enhance domestic battery manufacturing for defense and unmanned systems. The U.S. government has increasingly focused on battery supply chains to reduce reliance on foreign-made components and materials.
According to the company, the Badland Batteries plant will produce lithium-ion battery cells specifically designed for drones, unmanned aerial systems, and other defense applications.
Terri Zimmerman, CEO of Packet Digital, emphasized the significance of this phase, stating, “Completing our factory build and moving into production ramp-up is a critical inflection point for our company, but more importantly for domestic battery manufacturing for national defense.”
Transition to Large-Scale Production
Phase 2 of the program involved factory design, equipment selection, installation, and construction. With the facility now operational, Phase 3 will focus on scaling production, validating supply chains, qualifying manufacturing equipment, and increasing production throughput.
The Badland Batteries facility is designed to accommodate multiple lithium-ion chemistries, allowing it to adapt to evolving Navy mission requirements.
This announcement aligns with federal efforts to bolster domestic manufacturing capacity for critical drone and defense technologies. U.S. policymakers and industry leaders are increasingly prioritizing NDAA-compliant supply chains for batteries, electronics, and drone components.
U.S. Senator John Hoeven remarked on the project’s importance, stating, “Packet Digital is playing a key role in strengthening our Navy’s unmanned systems capabilities with advanced, domestically produced battery technology.” He noted that securing continued funding under this contract supports both national security and manufacturing jobs in North Dakota.
Enhancing Battery Performance for Diverse Applications
Battery performance is a crucial consideration for various drone applications. Both military and commercial operators are seeking improvements in flight times, charging speeds, and reliability of power systems, especially in challenging environments.
The Fargo facility represents a long-term investment in American manufacturing and workforce development, aiming to provide a domestic source for battery cells used in defense systems.
Zimmerman stated, “By scaling cell production in North Dakota, we are building durable industrial capability that the Navy can rely on today and expand on in the future.”
Founded in 2003, Packet Digital specializes in developing batteries, chargers, battery management systems, and related power technologies for aerospace, defense, and telecommunications sectors.